Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
A financial power of attorney allows an individual (the principal) to designate someone else (the agent) to make financial decisions and transactions on their behalf. The agent, also called an attorney-in-fact, has a fiduciary duty to act in the principal’s best interests. When selecting an agent for a financial power of attorney, there are several key considerations:
In most cases, the agent must be a legal adult (at least 18 years old) who is mentally competent. Beyond that basic requirement, the principal has broad discretion in choosing their agent. Common choices include a spouse, adult child, other relative, trusted friend, or professional advisor. The agent should be someone the principal trusts completely to manage their finances responsibly.
Some states have additional restrictions on who can serve as an agent. For example, some jurisdictions prohibit the principal’s health care providers or caregivers from acting as financial agents to avoid potential conflicts of interest. Additionally, some states do not allow employees of nursing homes or similar facilities to serve as agents for residents.
It’s advisable to name at least one alternate agent in case the primary agent is unable or unwilling to serve when needed. The principal may also appoint co-agents who must act together, though this can sometimes lead to disagreements or delays in decision-making.
Importantly, the agent does not need to have expertise in financial matters, though choosing someone with some financial acumen can be beneficial. The key qualities to look for are trustworthiness, reliability, and a willingness to take on the responsibilities involved. The principal should discuss the role with their chosen agent(s) in advance to ensure they are comfortable with the duties involved.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.